Corrective Action Plans

2024-001 Program/Department: Conservation, Research, and Development and Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Federal Agency: Department of Energy AL #: 81.086 and 81.117 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Various – See SEFA Type of Finding: Other Matters Internal Control Impact: N/A Finding: Management did not provide all of the necessary supporting documentation to complete the audit and submit the reporting package to the Federal Audit Clearinghouse by the due date. Status: The audit report attached to this letter provides evidence of completion of the reporting package by October 17, 2025. Corrective Action Plan: Auditor will initiate, and Metropolitan Energy Center management will complete, the upload and submission to the Federal Audit Clearinghouse by October 30, 2025. Metropolitan Energy Center management will ensure the single audit reporting package for FY25 and subsequent years, if required, begin sooner for timely completion and submission prior to the deadline. Person(s) Responsible for Implementation: Kelly Gilbert, Executive Director, kelly.gilbert@metroenergy.org, (816) 812- 9772

October 30, 2025 Person responsible: Fernando Soto, President / CEO Fiscal Year Ended December 31, 2024 Section III – Federal Awards Findings and Questioned Costs Item 2024 – 001 Federal Assistance Listing Number: 93.914 HIV Emergency Relief Project Grants – Public Health Solutions Condition The Organization’s Data Collection Form submission to the Federal Audit Clearinghouse was not filed on time within nine months of the end of its fiscal year. Current Status The delay in submission to the FAC was due to a combination of factors, including the extended time required to prepare the fiscal year 2024 financial statements and compile supporting documentation, as well as delays in the completion of the audit process. To support timely future submissions, the organization will implement the recommended control procedures and adopt an internal timeline beginning with the fiscal year ending December 31, 2025. In addition, the audit process will be initiated earlier to ensure completion and submission by the established deadline of September 30, 2026.

Contact Person Michelle Erickson Corrective Action Plan The Abused Adult Resource Center has contracted with a CPA to prepare the Statement of Expenditures of Federal Awards and to provide support for federal expenditures. Completion Date Fiscal Year 2025

Finding 2024-002 Submission of Reporting Package Criteria: 2 CFR 200.512(a)(1) states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report or nine months after the end of the audit period (whichever is earlier). Condition: The Organizations did not timely submit the Single Audit Reporting Packages for the year ended December 31, 2023. Cause: Due to delays in the audit process, the December 31, 2023 audit was not completed until after the submission deadline. Effect: The Organizations could miss out on grant opportunities. Recommendation: We recommend ensuring the accounting records are prepared and reconciled in a timely manner to ensure the audit and submission of the data collection form be completed in a timely manner. Corrective actions taken or planned: Management will develop and execute a comprehensive corrective action plan, including the implementation of controls and procedures around the period-end closing process. This will ensure that all necessary adjustments and reconciliations are completed and reviewed prior to the year-end audit fieldwork. Additionally, management will provide traning for finance and accounting staff to emphasize the importance of accuracy and timely financial reporting. Name of contract person responsible for corrective action plan: Brian Gillette, Chief Financial Officer Anticipated completion date: December 31, 2025

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2025 financial reporting process and related audit to meet the Financial Audit Clearinghouse reporting requirement. We will also identify additional training for departmental staff to improve skills and address identified deficiencies. Finally, Management will review capacity constraints and development solutions to improve capacity.

The policies and procedures around the Single audit will be reviewed, assigning responsibility, and implementing tracking systems. The CEO, COO, CFO, and Grants Manager will be responsible for overseeing the data collection and submission process internally, keeping track of the audit deadlines to ensure that all processes are moving forward in a timely fashion. All relevant parties will be trained on the reporting requirements and due dates.

Recommendation: Controls should be implemented to ensure timely filing of the audit package to the Federal Audit Clearinghouse. Views of Responsible Officials: The Organization agrees with the auditors' recommendation.

This finding was related to staff turnover within the various offices involved in the annual A-133 compliance audit as noted in previous findings. The hiring of qualified staff properly trained should avoid this finding going forward. Implementation of the corrective action plan is expected to be complete by June 30, 2026. Responsible Party Robert Rood Interim Vice President Finance and Administration

Management acknowledges that the required single audit report was not filed within the timeframe specified in 2 CFR Part 200, Subpart F, § 200.512. Fiscal Year 2024 was the first year our organization exceeded the federal expenditure threshold that triggers a single audit requirement. It was our understanding that there was a change to the threshold from $750,000 to $1,000,000. Unfortunately, management misunderstood effective date was for fiscal year 2024 and not 2025. As a result, we incorrectly concluded that a single audit was not required for that year. Going forward, a new internal control has been established requiring annual verification and documentation of total federal expenditures and the applicability of the single audit threshold. The Finance Designee will complete this verification, which will then be formally reviewed and approved by the Chief Financial Officer. Additionally, management will initiate audit planning discussions with external auditors earlier in the fiscal year to confirm whether a single audit is required, ensuring timely preparation and compliance.

Finding 2024-005 Significant Deficiency in Internal Control over Compliance and Noncompliance – Reporting Deadline for Federal Single Audit Questioned Programs ALN 15.022 Tribal Self Governance Agencies: Department of Interior ALN 84.250 American Indian Vocational Rehabilitation Services Agencies: Department of Education Award Numbers GT-OSGT812- Year 2013 GT-OSGT812- Year 2017 GT-OSGT812- Year 2018 GT-OSGT812- Year 2019 GT-OSGT812- Year 2020 GT-OSGT812- Year 2021 GT-OSGT812- Year 2022 GT-OSGT812- Year 2023 GT-OSGT812- Year 2024 GT-OSGT812- Year 2025 H250N210051- Year 2023 H250N210051- Year 2024 Condition The Association did not comply with the required submission date of the data collection form and reporting package to the FAC for the fiscal year ended December 31, 2024. Status In Progress. Management’s Corrective Action Plan Management acknowledges that the data collection form and reporting package was filed late for Fiscal Year 2024 due to employee turnover. As these positions have been filled subsequent to year end, we do not anticipate any such issues for Fiscal Year 2025.

Finding 2024-004: Internal Control over Compliance Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Recommendation: The County should strengthen its internal controls over year-end financial close and reporting with adopted policies and procedures to ensure compliance with the Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements section. Action Taken: This finding is very similar to 2024-002. So, the action taken will be the same as noted for that finding and is as follows. The new accountants are not anticipating any issues with meeting the deadline of June 30, 2026 for the 2025 audit. As they have been busy implementing the new processes that are mentioned in the action taken plan for finding 2024-001. These new processes will ensure that they are able to meet any audit requirements for the 2025 audit in a timely manner. In addition, they are already making plans to start submitting reports, etc. to the auditor immediately beginning in the first quarter of 2026. Another thing that will help with the completion of the audit by deadline is that the accounting office and Treasurer's office have developed a good relationship and have a great line of communication, which helps in getting tasks completed on time. If there are questions regarding this plan, please call the party responsible listed below. Sincerely yours, Tressesa Martinez County Administrator Conejos County, Colorado

Corrective Action Plan Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management acknowledges that the late engagement of the external auditors contributed to the delayed completion and submission of the Single Audit. To prevent recurrence, management will establish a proactive annual audit planning schedule that ensures auditor engagement well in advance of the reporting deadline Official Responsible for Ensuring CAP: Paul Walker, Chief Executive Officer Planned Completion Date for CAP: Immediately Plan to Monitor Completion of CAP: Management will maintain an annual audit calendar with milestone dates for financial statement preparation, auditor fieldwork, and report submission. The CEO will review progress monthly to ensure timely completion.

Management agrees with the finding and will evaluate expenditures of federal awards each year to ensure the filings are done timely.

The Finance Department Managemetn will implement policies to ensure timely financial reporting and esnure the timely completion of an audit. The city expects to have these issues addressed by June 30, 2026. The responsible party is Patrick Williams, Chief Accountant

Finding #2024-002 Prior Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Bessie Riordan Addition Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

Finding #2024-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Bessie Riordan Addition Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

Expedite the audit contracting process to ensure compliance with established deadlines, in accordance with applicable regulations. IMPLEMENTATION DATE Immediately RESPONSIBLE PERSON Maritza Torres López

Recommendation: We recommend that management timely submit annual audit report to the Federal Audit Clearinghouse. To do this, management should develop and implement a clear timeline with internal milestones for completing audit preparation and review. Management should also establish internal control procedures that assign specific responsibilities to staff to ensure that all federal reporting deadlines are met. Views of Responsible Official: Management of the Organization concurs with the audit finding and will immediately implement the auditors’ recommendations. Internal control procedures will be put into place to establish milestones and overseen by the Executive director

Condition Found: Per 2 CFR § 200.512(a), the auditee must submit the data collection form (DCF) and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the auditee’s fiscal year. The audit for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse until DATE, which is after the required submission deadline of September 30, 2024. Individual(s) Responsible for Corrective Action: Lynda P. Goldthwaite, Executive Director and Stacey Matott, Director of Finance Planned Corrective Action: With the debt work out in place, management should continue to follow procedures in place to ensure the timely completion of future audits and submission of the reporting package to the Federal Audit Clearinghouse. Anticipated Completion Date: September 30, 2025

Finding 2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. The additional effort needed to reconcile fiscal year 2023 balances resulted in delays in reconciling fiscal year 2024 balances. This finding is was also present in prior year. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization’s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Management’s Corrective Action Plan There was significant turnovers in the finance department, including the CFO and the finance director. These turnovers affected the ability of the Organization to produce the information on time for the auditors for the fiscal year 2023 audit. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation and recruiting vacant positions. We completed accounting policy changes which will correct the issues noted. Management is confident that the issues that have been noted have been rectified. Contact Person: Cynthia Benton, Chief Financial Officer Anticipated Completion Date: December 31, 2025

ASPIRA will put in place a process for monitoring the certification of the audit reporting package and ensure to submit the audit reporting package before the deadline.

Finding 2024-004: Name of Contact Person: Meagan O’Neal Management Response: The new Finance Director, hired in October 2023, immediately began reviewing staff assignments to analyze for improvements in efficiency while keeping separation of duties secure, while also completing the FY23 audit. This review allowed restructuring tasks to improve efficiency and the ability to set up new processes. The finance director has utilized help from NC Association of County Commissioner staff as well as UNC School of Government courses to continue to update processes and improve upon the quality of data provided. The occurrence of Hurricane Helene and the Spring wildfires in Transylvania County impacted staff capacity to complete the FY24 audit however now that it is complete we will be diligently working to have FY25 information submitted quickly. Notes have been added to the process documents to ensure all steps are taken when submitting the data collection form to the Federal Audit Clearinghouse once future audits are completed by the firm. Proposed Completion Date: Immediately.

Response Management is aware of reporting requirements and has committed the resources to ensure timely filing for future reports. Responsible Party CFO at Lake Health District Estimated Completion 12/31/2025

Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority has reviewed and updated its financial reporting and closing processes and controls he preparation of the final trial balances and related schedules. As part of this process, we will create a year-end checklist with deadlines established and set up status meetings to monitor the progress. Name(s) of the contact person(s) responsible for corrective action: Lowel Kruger, Executive Director. Planned completion date for corrective action plan: December 31, 2024

, 2024-007 Community Economic Adjustment of Establishment, Expansion, Realignment, or Closure of a Military Installation/ Finance / Water and Waste Disposal Loans and Grants (Section 306C) (Not A Major Program) / Disaster Grants - Public Assistance (Presidentially Declared Disasters (Not A Major Program) Late Single Audit Submissions Starting in Fiscal Year 2025-2026 management will perform the following actions: Management audit contracts will be followed up directly by the Financial Affair Director to ensure timely execution to ensure audits are timely completed and planned. Management enhancements to the finance function, such as accounting closing checklists, accounting closing meetings and reconciliation processes, among other actions, should improve the timing of audit results. To ascertain that basic and recurrent information requested by auditors is ready, management will prepare an updated list of information normally requested and will prepare a OneDrive (cloud backup storage) where all information will be archived and ready to be delivered to the auditors as requested. This should provide efficiency and agility to response to auditors in a timely manner. Management expects to achieve full compliance with pending Single Audit reports’ issuance on or before March 30, 2026. Jamille E Muriente Díaz, Financial Affair Director Telephone: 787-705-7188 Email: Jamille.muriente@lra.pr.gov Target Completion Date - 3/30/2026